Fiscal Watchdog Bites Capital Master

By MICHAEL JANOFSKY

Published: March 27, 1996

WASHINGTON, March 26—
He challenged residents to mow their lawns and clean their alleys, business leaders to create more jobs. He implored the District of Columbia Council to protect his summer jobs program, Congress to pass the District's 1996 appropriation bill.

In his first State of the City address since regaining office in 1994, Mayor Marion S. Barry Jr. deliveredan impassioned plea on Monday night that the nation's capital be protected from financial, physical and spiritual ruin.

But today, the head of the city's financial control board said in an interview that there was one crucial figure who was not doing his part to help the city recover: Mr. Barry.

"I saw promises and the reiteration of promises, but I don't see a display of any means of achieving them," Andrew F. Brimmer, the economist appointed by President Clinton last year to lead the District into financial stability, said in an interview today, referring to newspaper accounts of Mr. Barry's speech, which Mr. Brimmer did not attend. "Even when the Mayor makes substantial commitments, I don't see any determination to stick with them."

The speech was Mr. Barry's most wide-ranging assessment of the city since its financial ills became apparent. He hammered away at two themes, calling for more public service by citizens and less "District bashing" by critics. He also strived to convince listeners that even with the city's appropriation stalled in Congress, many of the steps to return the city to sound financial footing, including the cutting of thousands of government jobs, were well under way at his direction.

"Let me report," he said, "that this government has not just been standing around, waiting for a financial ambulance or cash transfusion. We have worked every day to meet our challenges with whatever resources, skills, friends or ingenuity we could find."

He also took pride in pointing out that the District had reduced spending this year by a record $151 million.

But Mr. Brimmer, whose board has authority over all fiscal matters and who has frequently expressed such concerns, said he was not yet convinced that Mr. Barry was earnest in his efforts to reach a balanced budget by 1999, as required by the law that created the five-member board. Mr. Brimmer said he felt that Mr. Barry, whose political success has largely been built upon job creation, was using the board "as a foil" to preserve his base by passing blame for tough decisions, like cutting jobs.

"I'm not optimistic," Mr. Brimmer said. "Some of my colleagues are more optimistic than I am. They believe there has been a major sea change in the Mayor's behavior. I do not see that sea change."

Mr. Brimmer cited several recent examples of actions by Mr. Barry that leave him unconvinced. One involved Mr. Barry's veto of a measure passed by the City Council that would have forced the school system to cut 1,500 jobs. Mr. Barry had previously supported the cuts but changed his mind under pressure from teacher unions and the National Education Association.

"That is the latest illustration of the Mayor's ambivalence," Mr. Brimmer said. "The lack of commitment to achieve these goals, I find that very troublesome."

Mr. Brimmer also cited Mr. Barry's comments to students from the University of the District of Columbia who blocked a major street for 14 hours, protesting a perceived cut in the school's budget.

Anthony Williams, city's chief financial officer who was appointed by Mr. Barry but is answerable only to the control board, notified all city agencies that had overspent their budgets, including the university, that 10 percent of their current appropriation would be held up until he was certain they would not overspend again.

In addressing the students, Mr. Barry told them to blame Mr. Williams, not school officials, for any cuts.

"That disappointed me," Mr. Brimmer said.

Beyond those incidents, Mr. Brimmer cited a variety of other issues that he said worried him, including Mr. Barry's proposed budget for 1997 that estimates an increase in overspending by $102 million, after a $54 million increase this year. Adding the carry-over debt of $335 million from Mr. Barry's predecessor, Sharon Pratt Kelly, the new increase would leave the city with overall debt of $544 million by next year.

Mr. Brimmer said the city's indebtedness had grown to such an enormous problem that he almost daily encountered city contractors who plead with him to help them get their money.

"My voice mail at home is clogged with calls from contractors and vendors, telling me their difficulties with the city," he said, adding:.

"I can't accommodate any of them. I refer them to the chief financial officer. That's all I can do."

Photo: Andrew Brimmer, head of the fiscal control board for theDistrict of Columbia, says he is not impressed by the Mayor's calls for change. (David Scull/The New York Times)